Walking dogs is a great way to stay fit, and many working individuals and families simply don’t have time to give their pets the exercise they need. While it takes a lot of work to make a full-time living selling crafts, many retirees, stay-at-home moms and 9-to-5 workers turn their hobby into part-time income by selling crafts online. If you’re good in math, reading or other basic skills, tutoring could be a lucrative option. Another option is to sign up with a local non-profit that pays tutors for their services. Starting a blog is a great way to share your passion with the world, while making some extra money. If you’d like to work sometimes and not others, consider signing up for temporary work. Temp jobs can let you experience lots of different types of work during retirement. If you love growing fruit and vegetables, consider selling your extra produce at farmer’s markets. Each time you split your plants, you can sell the extras to aspiring gardeners. Retirees could upgrade old pieces of furniture and sell them online or locally, or offer their services for custom furniture upgrades.
Since the market hit rock bottom about eight years ago, it has been steadily improving, and investors have seen skyrocketing stock prices and annual returns.
Unfortunately, those spectacular averages won’t last forever, and the investment pros have some pretty pessimistic predictions for the future.
Asset management company BlackRock, for example, claimed in its quarterly investment outlook report that U.S. stocks are expected to gain an annualized 5.9% over the next 10 years (compared to the estimated 12% return investors saw in 2016).
It’s perfectly normal for the stock market to bounce around like a roller coaster. But here’s the problem: According to a survey by BlackRock, 66% of investors believe future gains will be roughly equivalent to what they’ve seen in recent years, and 17% believe they’ll be even higher.
On top of that, many investors are holding a few flawed assumptions about how much they’ll actually need to retire. While 56% of investors believe they’ll have enough money to retire, 65% said they were unaware that expected returns are predicted to be far lower in the future than they’ve been in the past.
So what can you do to protect your retirement savings in the event that the market crashes?
1. Check that your investments are aligned with your risk tolerance
The worst thing you can do when you’re faced with the idea of a crash is to put all your money in high-risk, high-reward stocks. Volatile stocks are already risky enough (especially if you’re an older investor who has a lot to lose), but when combined with the fact that the market as a whole is expected to drop over the next several years, it becomes even riskier.
Also, you may already be investing relatively aggressively because the market has improved so much over the last eight years. You may need to rebalance your portfolio to ensure your investments are aligned with your risk tolerance, otherwise, you could stand to lose a…